Hotel industry seeks policy boost as KSHA leaders meet CM Shivakumar

Bengaluru, Jul 14 (PTI) A delegation of the Karnataka State Hotels Association (KSHA), which met Chief Minister D K Shivakumar, on Tuesday demanded that his government adopt a more industry-friendly approach to strengthen the sector, stating that it is one of the state's largest employment generators. The delegation led by the KSHA president, G K Shetty, submitted a detailed two-page memorandum to Shivakumar, congratulating him on becoming the chief minister and outlining the challenges faced by the hotel industry along with a series of policy recommendations. In a statement, KSHA said that the association sought a substantial reduction in the solid waste disposal fee, arguing that the current charge of Rs 12 per kg would place an unsustainable financial burden on hotels. It urged the government to revise the fee to a more affordable Rs 3 to 5 per kg. The delegation also requested the introduction of permanent trade licences for GST-registered commercial establishments, replacing the existing system of mandatory annual renewals. The move, it said, would reduce unnecessary administrative procedures and create a more business-friendly environment. Calling for reforms in the excise sector, the association urged the government to provide a clear legal framework for the existing excise licence contract system and the age-old licence transfer to their legal heirs and address long-pending issues affecting businesses in the sector. Expressing concern over the increase in the minimum wage to Rs 24,407, KSHA said the move would severely impact small and medium-sized hotels. The association pointed out that most hotels already provide employees with free food and accommodation in addition to wages, and appealed to the government to retain the existing wage structure until a scientific assessment of the industry's financial capacity is undertaken. The association also urged the government to extend the existing permission for hotels in Bengaluru to operate until 1 am to all major cities, including Mysuru, Mangaluru, Hubballi and Belagavi. Although orders have been issued for several cities, KSHA requested the government to direct district administrations and police authorities to ensure their effective implementation. Welcoming the government's drive to clear footpaths of encroachments, the association nevertheless appealed for the creation of dedicated vending zones for street vendors to safeguard their livelihoods while ensuring pedestrian safety. The delegation said the hotel, hospitality and tourism sectors play a crucial role in Karnataka's economy and sought sustained policy support to promote investment, employment and long-term growth. PTI AMP ADB